The district's crisis-hit railways now face the threat of strike action after protracted pay talks between station staff and Arriva Trains Northern broke down for a second time.

Union leaders today said they were poised to ballot members after Arriva failed to accept their demand for a 40 per cent pay rise after two days of talks.

The Transport Salaried Staff Association (TSSA) claims such a pay increase is needed to bring their members' pay up to the level of other rail firms.

Arriva now faces the prospect of station staff across Yorkshire walking out only days after it was rapped by the Strategic Rail Authority for its poor performance and was handed a £2 million fine.

TSSA negotiator Steve Coe said he was talking to other representatives in the union to decide on the next move. "I cannot say for certain what we will do, but I know a large number of my members are of the view that this has been going on for two years now and they want to see some results," he said.

Mr Coe had been confident that Arriva - which has given its drivers an 18 per cent pay rise in a bid to stop them quitting the firm - would concede to the TSSA's demands.

But today he admitted the union was "very close" to balloting its members over strike action. "It is frustrating because I don't believe there is a huge gap between our positions, and further talks could produce a solution," he said.

"If talks are not going to bring results then it puts us in the position where we are considering our options in terms of industrial action."

He was hopeful Arriva will reconsider its position if the TSSA, which represents employees such as ticket-office staff and conductors, goes ahead with the ballot.

The TSSA claims ticket-office staff employed by Arriva, who run all the stations in West Yorkshire, earn about £11,000, whereas rival firms pay at least £5,000 more.

Today Arriva refused to comment on the pay negotiations, saying it was a matter between the firm, its employees and their representatives.